Reporting and accounting of LULUCF activities under the Kyoto Protocol

Background

As stipulated in the Kyoto Protocol (KP) the net change in carbon stocks and greenhouse gas emissions
by sources and removals by sinks resulting from direct human-induced land-use change and forestry
activities shall be used to meet the commitments referred to in Article 3, paragraph 1, of the Kyoto
Protocol by each Party included in Annex I.

Reporting of LULUCF activities under the Kyoto Protocol refers to providing information, including
estimates of the changes in carbon stocks and anthropogenic greenhouse gas emissions by sources and
removals by sinks from land use, land-use change and forestry activities, on:

in accordance with Article 5, paragraph 2, of the Kyoto Protocol. The reported estimates of the
changes in greenhouse gas emissions by sources and removals by sinks should be calculated taking into
account uncertainties, transparency in reporting, verifiability and following guidance contained in the
decision 15/CMP.1 and decision 17/CMP.1: (for the first
commitment period) and decision
6/CMP.9: (for the second commitment period).

Accounting of LULUCF activities under the Kyoto Protocol refers to applying the guidance contained in
decision 16/CMP.1: (in the
first commitment period) or
decision 2/CMP.7: (in the second commitment period) to estimate the net change in carbon stocks
and greenhouse gas emissions by sources and removals by sinks resulting from direct human-induced
land-use change and forestry activities referred to in Article 3 paragraphs 3 and 4 of the Kyoto
Protocol.

Guidance on reporting and accounting of LULUCF activities under the Kyoto Protocol applicable in the
first commitment period differs from the one applicable in the second commitment period.

Reporting of LULUCF activities under the Kyoto Protocol

The information to be reported under the Kyoto Protocol (Articles 3.3 and 3.4) during a commitment
period is supplementary to the information reported under the Convention (Article 4.1(a)). In
particular, Parties do not have to submit two separate inventories but should provide any information
required under the Kyoto Protocol as supplementary, within the inventory report, to demonstrate
compliance with its commitments under the Protocol.

Under the Kyoto Protocol, Parties shall annually report emissions by sources and removals by sinks of
CO2 and other greenhouse gases resulting from:

Any elected human-induced activities under Article 3.4, which can be: forest management
(mandatory in the second commitment period), revegetation, cropland management and grazing land
management.

The reporting shall begin with onset of the activity or beginning of the commitment period,
whichever comes later. Parties also have to report annually, supplementary information related to
LULUCF under the provisions of the Kyoto Protocol and the Marrakesh Accords to ensure compliance with
their commitments. Depending of the reported commitment period, reporting of LULUCF activities under
the Kyoto Protocol shall apply guidelines as explained below.

For the first commitment period decision 15/CMP.1
“Guidelines for the preparation of the information required under Article 7 of the Kyoto
Protocol” stipulates that each Party included in Annex I shall include in its annual greenhouse
gas inventory information on anthropogenic greenhouse gas emissions by sources and removals by sinks
from land use, land-use change and forestry activities under Article 3, paragraph 3, and, if any,
elected activities under Article 3, paragraph 4, in accordance with Article 5, paragraph 2, as
elaborated by any good practice guidance in accordance with relevant decisions of the COP/MOP on land
use, land-use change and forestry. Estimates for Article 3, paragraphs 3 and 4, shall be clearly
distinguished from anthropogenic emissions from the sources listed in Annex A to the Kyoto Protocol.
Detailed reporting requirements are specified in paragraphs 6 to 9 of decision 15/CMP.1 .

Decision 17/CMP.1 “Good
practice guidance for land use, land-use change and forestry activities under Article 3, paragraphs 3
and 4, of the Kyoto Protocol” specifies that for the first commitment period Parties included in
Annex I to the Convention that have ratified the Kyoto Protocol shall apply the IPCC Good practice guidance for
LULUCF for the purpose of providing information on anthropogenic greenhouse gas emissions by
sources and removals by sinks from land use, land-use change and forestry activities under Article 3,
paragraph 3, and, if any, elected activities under Article 3, paragraph 4, in accordance with Article
5, paragraph 2, of the Kyoto Protocol.

For the second commitment period decision
6/CMP.9“Guidance for reporting information on activities under Article 3, paragraphs 3 and
4, of the Kyoto Protocol” stipulates that, for the purpose of providing information on
anthropogenic greenhouse gas emissions by sources and removals by sinks from land use, land-use
change and forestry activities under Article 3, paragraph 3, forest management under Article 3,
paragraph 4, and elected activities, if any, under Article 3, paragraph 4, of the Kyoto Protocol in
accordance with Article 5, paragraph 2, of the Kyoto Protocol, Parties included in Annex I shall
apply the 2006 IPCC Guidelines for
National Greenhouse Gas Inventories , as implemented through the “Guidelines for the
preparation of national communications by Parties included in Annex I to the Convention, Part I:
UNFCCC reporting guidelines on annual greenhouse gas inventories”, in accordance with decision
4/CMP.7. Appendix I to
decision 2/CMP.6:, provides forest management reference levels (FMRL) that were set transparently
based on provision contained in that decision. The secretariat prepared a synthesis report of the key
conclusions of the forest management reference level review process.

The same decision further specifies that, for the purpose of providing information referred to above
in the second commitment period, Parties included in Annex I shall apply, as appropriate, the
Intergovernmental Panel on Climate Change (IPCC) 2013 Revised Supplementary Methods and Good
Practice Guidance Arising from the Kyoto Protocol in a manner consistent with decision 2/CMP.7,
and consistent with annex I of decision 24/CP.19 “Revision of the UNFCCC reporting guidelines
on annual inventories for Parties included in Annex I to the Convention” and remaining
regulations contained in
decision 6/CMP.9“.

In the same commitment period information on wetland drainage and rewetting activity under Article 3,
paragraph 4, of the Kyoto Protocol (if elected) shall be provided according to regulations contained
in the 2013 Supplement to the
2006 IPCC Guidelines for National Greenhouse Gas Inventories: Wetlands . The use of the
supplement referred to above is encouraged but not mandatory in context of any other activities under
Article 3, paragraphs 3 and 4, of the Kyoto Protocol.

Unlike the Convention, which includes all emissions and removals from LULUCF in a Party’s total
emissions, the Kyoto Protocol restricts the accounting of the LULUCF sector to emissions and removals
from specific activities that are defined under Article 3, paragraphs 3 and 4, of the Protocol.
Article 3, paragraph 3, covers direct, human-induced, afforestation, reforestation and deforestation
activities. Accounting of these is mandatory: each Annex I Party must account for emissions and
removals in the commitment period on lands on which these activities have occurred. Article 3,
paragraph 4, activities are restricted to forest land management, cropland management, grazing land
management and/or revegetation. In the second commitment period article 3, paragraph 4, activities
include also wetland drainage and rewetting. Accounting of these activities differs between the first
and the second commitment period. For activities that are elective each Party must choose whether to
account for emissions and removals from each such activity during the commitment period.

In contrast to emissions from Annex
A sources, the Kyoto Protocol requires Parties to account for emissions and removals from LULUCF
activities by adding to or subtracting from their initial assigned amount. Net removals from LULUCF
activities result in the issuance of additional emission allowances, called removal units or RMUs,
which a Party may add to its assigned amount; Parties must account for any net emissions from LULUCF
activities by cancelling Kyoto Protocol units. Calculation of the quantity of emission allowances to
be issued or cancelled is subject to specific rules, which differ for each LULUCF activity.

Depending of the reported commitment period, accounting of the LULUCF activities under the Kyoto
Protocol shall apply guidelines contained in the following decisions:

The annex to decision
16/CMP.1: “Land use, land-use change and forestry” provides rules for accounting of
LULUCF activities under KP in the first commitment period. In particular it
contains:

Modalities, rules and guidelines for accounting of LULUCF activities under Articles 3.3 and 3.4
of the Kyoto Protocol in the first commitment period

Principles to govern LULUCF project activities under Article 12 of the Kyoto Protocol

More information on accounting of LULUCF activities under the Kyoto Protocol in the first
commitment period is contained in the Kyoto Protocol
Reference Manual.

The annex to decision
2/CMP.7: “Land use, land-use change and forestry” provides rules for accounting of
LULUCF activities under KP in the second commitment period. In particular it
contains:

Definitions (Natural disturbances and Wetland drainage and rewetting”) and confirms that
definitions contained in annex to decision 16/CMP.1 (Forest,
afforestation, reforestation, deforestation, revegetation, forest management, cropland management
and grazing land management) shall be the same in the second commitment period.

Modalities, rules and guidelines for accounting of LULUCF activities under Articles 3.3 and 3.4
of the Kyoto Protocol in the second commitment period.

Principles to govern LULUCF project activities under Article 12 of the Kyoto Protocol.